Scotmid succeeds in slower market

Scotmid Co-operative delivered a £2 million trading profit for the first half of this year.

Scotland’s biggest retailing mutual society hailed the performance against the background of a sluggish Scottish retail market and a period of considerable uncertainty.

Scotmid operates food, Semichem, funeral branches, post offices and a property division. It employs more than 4,500 staff in 350 retail and service outlets across Scotland, Northern Ireland and the north of England.

As well as Brexit uncertainties, Scotmid’s retail businesses faced challenges of price deflation, lukewarm consumer sentiment and additional costs from the introduction of the National Living Wage.

It delivered a trading profit of £2m for the 26 weeks to July 30, in line with the same period last year, from a turnover up £4m at £185m.

It also said its balance sheet was strong with assets in excess of £91m.

John Brodie, chief executive, said, “Against this background and that of a declining Scottish market, our retail trading businesses delivered good performances. The Scottish Retail Consortium reported a 1.6% average reduction in like-for-like sales in the six-month period.

“In this context our food convenience business performed well, with turnover growth driven by differentiation initiatives such as bakery and food-to-go helping to offset the market decline.

“Our Semichem stores found it more difficult to counter market factors but still delivered a positive sales performance ahead of the market.”

Scotmid expected the second half of 2016 to be equally or more challenging.

Semichem delivered a positive sales performance for Scotmid.